A total of 456 deals (mergers and acquisitions (M&A), private equity and venture financing) were announced in travel and tourism sector for the period of January to August 2024, which was a year-on-year (YoY) decline of 12.6% in deal volume, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that the travel and tourism sector saw the announcement of a total of 522 deals during January-August 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The travel and tourism sector’s deal activity reflects a cautious approach by deal-makers even though the regional and country-specific data reveal a mixed picture with majority experiencing contraction.”
During January to August 2024, North America, Asia-Pacific, and South and Central America regions reported YoY decline in deals volume of 32.9%, 17.9%, and 21.4%, respectively, whereas the number of deals for the Middle East and African region mostly remained at the same levels. However, Europe saw a 12.5% improvement in deal volume during January-August 2024 compared to January-August 2023.
Similarly, the US, China, Australia, and France experienced YoY decrease in deal volume by 32.9%, 44.1%, 25%, and 47.6%, respectively, during January-August 2024. However, deal volume in the UK, South Korea and India mostly remained at the same levels, whereas Japan, Germany and Spain witnessed improvements.
Meanwhile, the number of M&A deals and venture financing deals YoY decreased by 9.2% and 25.8%, respectively during the review period. Private equity deal volume, on the other hand, remained flat.
Bose concludes: “This period of reduced deal flow could signal an impending shift, with potential for strategic realignments and targeted investments as the sector adapts to new post-COVID-19 pandemic realities and evolving consumer preferences. Deal makers should remain attentive to the emerging trends and opportunities that may drive future growth in this dynamic sector.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
